Turnover for the quarter was up 4.3% to £1.97bn, further benefiting from a rise in cargo revenue.

Looking ahead to its full year results to March 2005, BA warned that yields - average revenues per passenger - were expected to decline as it continues to lower prices in the face of competition from low-cost carriers.

However, it said sales would be better than previously forecast.

"For the year to March 2005, the total revenue outlook is slightly better than previous guidance with a 3% to 3.5% improvement anticipated," BA chairman Martin Broughton said.

BA had previously forecast a 2% to 3% rise in full-year revenue.

Plane deliveries

It also reported on Friday that passenger numbers rose 8.1% in January.